Virgin America Seeks Chicago O'Hare Service

[Matt Molnar]

Press release:

Virgin America Seeks Service to Chicago O'Hare

Airline to File for Access to One of the Top U.S. Travel Markets

SAN FRANCISCO, May 12 /PRNewswire/ -- Virgin America, the
California-based airline that is reinventing air travel, today announced it
will seek government approval to serve Chicago O'Hare International Airport
(ORD). Chicago would be the eighth city in the airline's growing network of
service to primary airports in major urban cities.

"Chicago is one of the nation's top travel markets, a world-class city
and a perfect fit for our innovative, low-fare service," said Virgin
America President and Chief Executive Officer David Cush. "We want to bring
Chicago travelers a better choice, with attractive fares and brand new
planes that offer a unique, upscale flying experience -- from leather seats
to individual video touch-screens at every seatback."

Later this week, Virgin America plans to file an application with the
Federal Aviation Administration (FAA) to serve ORD under the existing
demand management rules at the airport. With legacy airlines representing
99 percent of the domestic departures at O'Hare, and low-cost airlines only
representing 1 percent, Virgin America intends to add some healthy
competition to the market.

"When more airlines compete, consumers win with lower fares and better
service. We think that savvy Chicago travelers will find our high-value,
low-fare service a breath of fresh air," Cush added. "The Mayor, airport
and City have shown tremendous vision by investing in O'Hare's future, with
long-term investments, such as the new runway coming online this fall that
will expand and modernize one of the world's busiest travel hubs. We want
to be part of O'Hare's future."

Virgin America hopes to fly from San Francisco International Airport
(SFO) and Los Angeles International Airport (LAX) to ORD later this year.

Launched in August 2007, Virgin America is the best financed new
airline in U.S. history and plans to expand to up to 30 new cities within
its first five years. The San Francisco-based carrier offers guests low
fares and a host of fun, inventive features aimed at making flying good
again, including mood lighting, custom-designed leather seats and the most
advanced in-flight entertainment system in the U.S. today. Virgin America's
Red(TM) In-flight Entertainment is a seatback 9-inch video touch-screen
that offers travelers over 25 on-demand movies, live TV, a food ordering
system, the ability to create a play list from over 3,000 MP3s, videogames,
interactive Google Maps and even a seat-to-seat chat feature.

Virgin America currently flies to seven cities with numerous daily
flights from: San Francisco (SFO) to Los Angeles (LAX), SFO to New York
(JFK), SFO to San Diego (SAN), SFO to Washington (IAD), SFO to Las Vegas
(LAS), SFO to Seattle (SEA), LAX to JFK, LAX to IAD and LAX to SEA.

About Virgin America:

EDITORS NOTE: Virgin America is a U.S. controlled and operated airline
with no business relationship to Virgin Atlantic. Sir Richard Branson's
Virgin Group is a minority share investor in the airline.

Virgin America launched service in August 2007 from its base of
operations at San Francisco International Airport's ultra-modern
International Terminal. The airline's brand new fleet of Airbus A320-family
aircraft offers guests interactive in-flight entertainment systems, power
outlets for laptops or other electronic gear and a host of other innovative
features aimed at making flying good again. In Zagat's 2007 Global Airlines
Survey of frequent fliers, the airline was ranked No. 1 among U.S. carriers
for quality in First/Business Class and No. 2 for quality in Main Cabin. To
learn more: http://www.virginamerica.com

[AA 777]

I like how they say they want to add healthy competition to O'Hare. While I usually agree that healthy competition is good, right now I dont think there is such a thing. With fuel prices the way they are there just isnt room for competition as it is. VX will somehow convince the DOT that they are a LCC and the DOT will award them slots. VX + ORD Slots = pissing match from AA & UA and rightfully so. AA and UA gave up slots way back when and then JetBlue gets awarded slots - however they are more of a LCC. VX on the other hand I dont think is an LCC at all, but somehow they will get them :evil:

If/When Virgin America does enter the LAX/SFO-ORD market (a market already well served by AA/UA) Virgin will more than likely have some ridiculous fares that AA/UA will be forced to match or beat. In the end everyone will be losing money on LAX/SFO-ORD. :roll: Not to mention ORD will only get more congested! :borat: :sarcasm:

I know its a free market yada yada yada, but these days you have to be nuts to start up an airline these days (SkyBust) or start an airline and fly the same routes that everyone else and their mom offers service on - JFK-SFO/LAX (Virgin America). There may be a lot of demand on certain routes, but with everyone operating the same routes something has to give.... and fast :shock:

Not to mention as I type this Oil is $124.93bbl and Jet-A is $152.45bbl :shock:

[T-Bird76]

VX is biting off more then they can chew...why they are going head to head with AA and UA is beyond me...? Regardless if they have money in the bank from investors their operation isn't making money and getting involved in a fare war makes no sense. They can't target high yield customers because they don't have the route network those customers need and won't for years. Maybe it’s me but they seem to be a very none descrip airline that offers nothing more then mood lights and a fancy way of ordering a sandwich onboard.

[Informant]

VX is biting off more then they can chew...why they are going head to head with AA and UA is beyond me...?
For the same reason AA and UA are going head to head.


Regardless if they have money in the bank from investors their operation isn't making money and getting involved in a fare war makes no sense.
A profit isn't expected to turn until a year from now.


They can't target high yield customers because they don't have the route network those customers need and won't for years.
You mean like New York To LA? If not, then how do music artists, actors, directors, and biz people get around?


Maybe it’s me but they seem to be a very none descrip airline that offers nothing more then mood lights and a fancy way of ordering a sandwich onboard.
It's you, you have never flown on Virgin Tom A. Jetblue is a very non-descrip airline, virgin is a people first airline...you shoould try it sometime.